This article from 2024 gives a pretty good rundown as to why using this reasoning to ban Tiktok will set a very bad precedent:
If the govt cared about your data privacy, they would create data collection regulations that they could then use to ban tiktok if/when they violate them.
The only problem with that is it would perform logical actions that do not generate immediate short term profits. It might end up implementing 4 day work weeks and remote work, which are proven to increase productivity.